How to apply for SME IPO?

SME IPOs (Small and Medium Enterprises Initial Public Offerings) enable small and medium-sized enterprises to offer their shares to the public for the first time to raise capital and expand their business activities or finance specific projects. SME IPOs are tailored to the needs of smaller companies seeking access to the public markets, with requirements and investor subscriptions similar to mainboard IPOs.

How to Apply for SME IPO: Step-by-Step Process

Before applying for any SME IPO, understanding the company's financials and IPO terms is mandatory. Follow the steps below to apply for an SME IPO.

Step 1) Open a Demat Account: The First step is to open a Demat account with the broker of your choice, which will hold securities in digital form.

Step 2) Keep an eye on IPO announcements: It is important to closely monitor the upcoming IPOs through various channels like Chittorgarh.com, newspapers, the company's official website and announcements on BSE SME or NSE SME exchanges. The IPO announcement will mention the opening and closing date, price band and lot size. Investors will receive notifications for NSE SME and BSE SME IPOs on their Demat Account App.

Step 3) Applying for IPO: Once the IPO is available, there are several ways to apply. One of the most common ways is to apply online through a web trading platform or a stock trading app. It is important that investors provide accurate details, such as the number of lots they wish to apply for and the price they are willing to pay. To apply for an IPO, investors must have a UPI ID linked to their bank account. IPO applications are made through the ASBA process, which means that the application amount will be blocked in your bank account until the allotment process is completed.

Step 4) Bid for the IPO and make the payment: Bidders can submit the application form to their broker before the IPO closing date. This can be done online through the broker's platform. Bidders can submit bids on the closing date at the cut-off price. Bidders can also bid within the price range. Bidders must ensure sufficient funds in their bank account linked to their DEMAT account.

Step 5) Check the Allotment Status and Refund Amount: Bidders can check the allotment status on the website of the Exchange or the Registrar upon completion of the IPO. If the shares have been allotted, they will be credited to their demat account or the bid amount will be refunded to their bank account.